The stock prices of these companies are trading at a discount
With worries about inflation, a looming recession and war in Ukraine weighing heavily on markets, it can be difficult to know where to invest.
One option may be to look for stocks in strong companies that for some reason are trading at a discount. This may be because they disappointed in the short term or because outside pressures may have contributed to the stock’s downgrade.
Here are three stocks of companies that we think look undervalued right now.
Meta shares may be worth buying
Shares of Meta Platforms Inc (All Sessions) are down 36% this year to $198.62. The tech titan, which recently changed its name to Facebook’s Meta with great fanfare, has recently come under intense scrutiny from global regulators and lawmakers.
Last year’s whistleblower’s report that the company relied on research that showed its Instagram social media platform was harmful to teenage mental health – and that it had struggling to weed out hate speech – didn’t help matters.
Meta also faces a more hostile regulatory environment in Europe, which seeks to curb the power of big tech companies through its Digital Markets Act. February’s annual results were also disappointing, with Facebook losing daily active users for the first time. And, while first-quarter results were more upbeat, they still missed analysts’ earnings-per-share forecasts.
However, some fund managers believe that technology is the new refuge for investors in difficult times, as utilities and telecommunications once were.
And, while some commentators may be skeptical of the value placed on the Metaverse by boss Mark Zuckerberg, others strongly believe it’s the future and many companies and advertisers are already investing heavily in the space. Additionally, while Meta may face regulatory hurdles and competition from TikTok, it’s a behemoth and the current hurdles aren’t insurmountable for the company.
As COO Cheryl Sandberg recently told investors during first quarter earnings, while Meta believes “these are tough times, long term, we have a very strong competitive advantage when you look at opportunities. available to advertisers to advertise both offline and online.
Although it may take some time for Meta stocks to receive a new rating, the current drop could represent a buying opportunity for investors.